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PLEASE HELP: so afraid i'm going to lose my house !

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Regular Contributor

PLEASE HELP: so afraid i'm going to lose my house !

My offer was accepted on 10/11. My closing date is 1/11. 

 

I got a pre-qual with "market" listed under the rates for an FHA 30-year loan on a 200K new spec build in Arizona. The lender is a non-bank lender. The prequalification did not have a check box for Rate Lock. I was told this would be good for 90 days, but it didnt really matter because the offer was accepted the same day we got the pre-qual. 

 

Trump's win has blown mortgage rates up. I understand that Freddie Mac went up .25% today... who knows whats going to happen when the federal reserve meets to discuss interest rates on 12/13 and again in January. 

 

I also got a seperare "Loan Estimate" document -- i'm not sure if it "officially" replaced the FHA document or if it is simply another document or path that is also being considered prior to appraisal, underwriting, and closing. This Loan Estimate has "Rate Lock" check box un-marked. I was never told I had a way to Lock In the rate. It was never mentioned on the calls or emails I had with the loan officer. The loan is a Conventional Fixed Loan. 

The interest rate is 4.875%. 

 

Should I be fearful that this lender will pressure me into something that is not going to work out for me?

 

I already have $2500 in escrow and am under contract to put down $2500 more on 11/15. 

 

Should I shop around for other lenders?

 

I have not yet had a conversation with my Loan Officer about this yet - but not sure what my options are exactly. 

 

Please advise. Should I geniuely be concerned that regardless of what happens with my lender, that the increased rates alone will prevent me from getting qualified at closing?

 

So you know I was right on the edge of qualifying. My credit score is 680. I paid down my debt per the loan officers instructions and i'm ready with what we discussed would be between 10-15K down. I'm not rich. My house is only 200K. I barely have enough for down payments. 

 

Totally scared Trump is going to kill my house deal, and as a first time homebuyer and somebody who works full time and goes to school full time and support myself entirely - i'm going to be so angry if rates continue to go up because of Trump uncertainty. 

 

Thank you for any advice any of you may have. 

 

 

 

 

 

525 score as of 9/2015 --- only way to go is up!
25 REPLIES 25
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Moderator Emerita

Re: PLEASE HELP: so afraid i'm going to lose my house !

Loan Estimates are the standard mandatory disclosures lenders use now since Oct 2015.  Take a look at the stickies at the top of the mortgage section under the helpful threads section, shanethemortgageman has a great explanation about LEs. Here is the thread for you http://ficoforums.myfico.com/t5/Mortgage-Loans/Understanding-the-Loan-Estimate-LE-Part-I-of-II/m-p/4...

 

Shop your lender. 

Get other quotes. 

Message 2 of 26
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Regular Contributor

Re: PLEASE HELP: so afraid i'm going to lose my house !

So if the % increase by .125% then there is a pre-payment fee -- so the lender is more likely to make it work? I'm really upset I was not offered a rate lock. I honestly did not know to ask and was assuming I wasnt eligible for it or something. 

 

Whats the first step in shopping other lenders? Where can I find reputable ones?

 

Do I have to the 1st lender that I am shopping around?

 

What happens with the funds I already have in Escrow?

 

 

 

525 score as of 9/2015 --- only way to go is up!
Message 3 of 26
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Valued Contributor

Re: PLEASE HELP: so afraid i'm going to lose my house !

I don't think the very newly elected is your problem . What does your profile look like? Scores and down payment !?
Message 4 of 26
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Moderator Emerita

Re: PLEASE HELP: so afraid i'm going to lose my house !


@Sk323i wrote:

So if the % increase by .125% then there is a pre-payment fee -- so the lender is more likely to make it work? I'm really upset I was not offered a rate lock. I honestly did not know to ask and was assuming I wasnt eligible for it or something. 

 

Whats the first step in shopping other lenders? Where can I find reputable ones?

 

Do I have to the 1st lender that I am shopping around?

 

What happens with the funds I already have in Escrow?

 

 

 


^^^I have no idea what you mean by the statement in red.  There haven't been pre-payment penalties in residential mortgages in years.

If you are referring to your closing costs and pre-paid expenses due at closing, that is different. Is the builder picking up some of those costs?

 

The rate lock is something you can ask for - but in this case, it seems this particular lender is a little high.  But we don't know the items in your file or if they increased the rate to pick up your closing costs.  

 

The funds in escrow are used to buy the property and are applied to your down payment. Just because you change lenders - it doesn't mean you lose your escrow deposit that is a whole different thing. Do you have a Realtor or are you working with the sales reps that represent the builder?  

Message 5 of 26
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Frequent Contributor

Re: PLEASE HELP: so afraid i'm going to lose my house !


@Sk323i wrote:

My offer was accepted on 10/11. My closing date is 1/11. 

 

I got a pre-qual with "market" listed under the rates for an FHA 30-year loan on a 200K new spec build in Arizona. The lender is a non-bank lender. The prequalification did not have a check box for Rate Lock. I was told this would be good for 90 days, but it didnt really matter because the offer was accepted the same day we got the pre-qual. 

 

Trump's win has blown mortgage rates up. I understand that Freddie Mac went up .25% today... who knows whats going to happen when the federal reserve meets to discuss interest rates on 12/13 and again in January. 

 

I also got a seperare "Loan Estimate" document -- i'm not sure if it "officially" replaced the FHA document or if it is simply another document or path that is also being considered prior to appraisal, underwriting, and closing. This Loan Estimate has "Rate Lock" check box un-marked. I was never told I had a way to Lock In the rate. It was never mentioned on the calls or emails I had with the loan officer. The loan is a Conventional Fixed Loan. 

The interest rate is 4.875%. 

 

Should I be fearful that this lender will pressure me into something that is not going to work out for me?

 

I already have $2500 in escrow and am under contract to put down $2500 more on 11/15. 

 

Should I shop around for other lenders?

 

I have not yet had a conversation with my Loan Officer about this yet - but not sure what my options are exactly. 

 

Please advise. Should I geniuely be concerned that regardless of what happens with my lender, that the increased rates alone will prevent me from getting qualified at closing?

 

So you know I was right on the edge of qualifying. My credit score is 680. I paid down my debt per the loan officers instructions and i'm ready with what we discussed would be between 10-15K down. I'm not rich. My house is only 200K. I barely have enough for down payments. 

 

Totally scared Trump is going to kill my house deal, and as a first time homebuyer and somebody who works full time and goes to school full time and support myself entirely - i'm going to be so angry if rates continue to go up because of Trump uncertainty. 

 

Thank you for any advice any of you may have. 

 

 

 

 

 


I dont see where any rates have risen .25%.    Where did you find that?

Sept 15 -- All mid 400s
Jan 16 -- All mid 500s
Current: Knocking on 700s
Message 6 of 26
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Regular Contributor

Re: PLEASE HELP: so afraid i'm going to lose my house !

FreddieMac: http://www.freddiemac.com/pmms/

Too soon to tell if it will go up to 2% like the 10 year Treasury note. 

 

My credit score is 650

My credit util is at 40% 

Base Employment Income: 3,975

 

Total Liabilities: $4,079 /  Monthly Liabilities: $217

 

Total Assets: $12,399

 

Purchase Price: 215,900

Loan Amount: 205,105

Loan program: AZ Home Plus HFA 30 YR Fixed

Note Rate: 4.875% -- what is the difference between APR and Note Rate?

APR: 5.491%

 

Total Monthly Payment is $1,511

Closing Costs: $4,536

 

A 2 % increase in rates seems likely that I the monthly payment would get higher by how much?

 

Is it reasonable to assume that I may not qualify for the house on the closing date? What happens in that situation?

525 score as of 9/2015 --- only way to go is up!
Message 7 of 26
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Established Contributor

Re: PLEASE HELP: so afraid i'm going to lose my house !

Is that payment including insurance and taxes?
Message 8 of 26
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Moderator Emerita

Re: PLEASE HELP: so afraid i'm going to lose my house !


@Sk323i wrote:

FreddieMac: http://www.freddiemac.com/pmms/

Too soon to tell if it will go up to 2% like the 10 year Treasury note. 

 

My credit score is 650

My credit util is at 40% 

Base Employment Income: 3,975

 

Total Liabilities: $4,079 /  Monthly Liabilities: $217

 

Total Assets: $12,399

 

Purchase Price: 215,900

Loan Amount: 205,105

Loan program: AZ Home Plus HFA 30 YR Fixed

Note Rate: 4.875% -- what is the difference between APR and Note Rate?

APR: 5.491%

 

Total Monthly Payment is $1,511

Closing Costs: $4,536

 

A 2 % increase in rates seems likely that I the monthly payment would get higher by how much?

 

Is it reasonable to assume that I may not qualify for the house on the closing date? What happens in that situation?


Looks like this is a special program where you can receive down payment assistance in exchange for a higher interest rate as long as you meet the qualifying criteria

https://housing.az.gov/finance-authority/home-plus

 

Also, it looks like you are required to use only the lenders that are approved by the program.

 

Are you getting down payment assistance? Is there a way for you to purchase this home without the DPA?  I only ask because the difference between your interest rate using the program and the market rate seems very large. 

Message 9 of 26
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Established Contributor

Re: PLEASE HELP: so afraid i'm going to lose my house !

Published rates for this program can be found here :

http://www.ehousingplus.com/available-programs/arizona/ida-city-of-phoenix-county-of-maricopa/

http://www.ehousingplus.com/available-programs/arizona/ida-pima-tucson/PT_p2p/

You can also find a list of preferred lenders at ehousingplus.com
Message 10 of 26
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